Buru Energy Continues Drilling at Praslin 1 Well in WA's EP391 Permit

Buru Energy Ltd. provided Monday the following update on drilling operations at the Praslin 1 well in permit EP391 in Western Australia as at 06:00 hrs, Aug. 24. As reported Aug. 20, 5.5 inch (140 millimeter) casing has been run and cemented to 6,962 feet (2,122 meters). As at 06:00 hours today, the well was drilling ahead in 4.75 inch (120 millimeter) hole at 7,500 feet (2,286 meters) in the interpreted May River equivalent formation.

The well has encountered some 164 feet (50 meters) of dolomites and limestones with drilling breaks and mud losses inferring porosity is present. Hydrocarbon indications (heavy fraction gas peaks and occasional oil shows) were recorded over potentially porous reservoir zones in this section. The quality of the reservoir and the significance of the hydrocarbon indications in this section will be evaluated with wireline logs, and by testing if warranted, once the well reaches total depth. The secondary objective Nullara Formation limestones and potentially dolomites, are expected to be encountered once the May River section is fully penetrated. This section had strong indications of hydrocarbons in the Ungani North 1 well.

Praslin 1 is located 56 miles (90 kilometers) east of Broome and 9 miles (15 kilometers) west of Buru Energy's producing Ungani oil field. Buru Energy and Mitsubishi Corp. each have a 50 percent equity and contributing interest in the Praslin 1 well and in EP391.

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